What Is Balance Transfer Interest Rate
A balance transfer apr is the interest rate you ll pay on balances that you transfer to your credit card.
What is balance transfer interest rate. The average balance transfer credit card has a 0 apr for over 12 months with a 3 balance transfer fee and a 0 annual fee. Let s say you transfer 5 000 and there s a 3 balance transfer fee. A balance transfer lets you save on existing high interest debt by transferring your balance to a card with a lower interest rate or one with a 0 apr offer on balance transfers.
Balance transfers come with certain costs and limitations though. The cardholder pays off 1 000 in six months but because the 15 portion of the credit card debt is paid first the 15 apr rate for six. A balance transfer credit credit card lets you transfer debt from a high interest card to one with a low or 0 annual percentage rate for a set period of time usually between 12 and 20 months.
Many balance transfer credit cards will charge a balance transfer fee of 3 to 5 of the amount you transfer usually with a minimum of 5 to 10. A low rate balance transfer can save you money on interest. 3 balance transfer fee per transaction.
Your new starting balance would then tally 3 090. The purpose of a balance transfer credit card is to save money and time by reducing the overall cost of credit card debt and allowing you to pay off the balance faster some cards are from wallethub partners. Generally you ll have to pay a balance transfer fee usually 3 to 5 of the total transferred.
After that the apr for the unpaid balance and any new balance transfers will be a non variable rate of 17 99. The balance transfer rate offered is 0 for six months. When you transfer high interest debt to discover you ll lower your savings goals.
Many credit cards offer an introductory apr on balance transfers a low interest or 0 rate that stays in effect for a set time period which ranges from six months to 21 months or more depending on the card issuer.
